Why Are SO Many Luxury Stores Going BANKRUPT
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- เผยแพร่เมื่อ 5 ก.ย. 2024
- It seems there are SO many luxury stores filing for BANKRUPCY right now I wanted to find out what the hell is happening! Here are my findings and thoughts... Watch Next 👉 • 7 BEST & WORST Designe...
From Matches Fashion to Farfetch and even Macy's closing multiple stores, is something more sinister in the designer world happening for so many luxury retailers needing to file for bankruptcy, closing stores, and requiring rescue deals? I deep-dive into this topic and find out some very interesting results - information that I wasn't expecting to find. Are these closures due to the luxury market dying right now, or are other things leading to the demise of some huge luxury retailers.
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I wasn't expecting this outcome! Did you?
Watch next, What The HELL Is Happening With Pre-Loved Luxury? 👉 th-cam.com/video/jm6HoZHSCWY/w-d-xo.html
Hello dear, we are a 1:1 factory of big luxury brands from China. Is there any chance for us to cooperate?
Luxury is dreadfully over priced. The quality is awful. Perhaps people do not want high priced inferior products.
@@karyannfontaine8757
Which products are inferior? And inferior to whom? Which brands? What makes them inferior? The statement is simply too broad - there are still plenty of brands in the luxury market that makes good garments at good factories in Europe. And there is still at least three things that you can easily get from luxury brands, that you can hardly get from other brands:
(1) High grade wools, high grade - often organic - supima cotton and it’s still possible to get something which is not a blend.
(2) No cotton from Xinjiang picked by small children. And better sourced textiles in general.
(3) Much better - on average - stitching work, better quality yarn, which is something you can easily see, if you know your stuff, higher gsm, etc. Does this mean, that it’s always the case? Surely not. But one should mostly buy the stuff for the quality of the textiles anyway.
The days where you could buy everything from these brands, knowing that it would be good might be over - but if you know your stuff, you will still get the best. But if you go into a luxury store to buy a textile tote, 100% poly trousers, or a viscose dress, you ask for it yourself.
Kind of seems like the info in the video goes against that thought though, no?
@@Seb2900-uq8wq
Get a life n stop being so dramatic
@@kwokleongawyong2895
I mean you responded to my comment, so who should really get a life? At least I am not commenting on products that I could never afford anyway.
it cost 75 US dollars to make a Dior hand bag. So maybe people finally start to think it is idiotic to pay for illusion of " luxury".
A Dior bag cost 75 USD to make. Maybe people start to think it is idiotic to pay fortune for crap. Which it is.
FARFETCH used to do really strange things with prices.... items marked as sale, more expensive than original price.... Thats why I never buy there
YES. I thought I was losing my mind and you are the first other person that has mentioned it! I was looking for a specific pair of shoes and Farfetch had them priced higher than retail. That's optimistic of them but a definite no from me.
Same issue here, I saved an item and then, when I looked back after few days, the price was increased. Long story short I deleted my FF account.
They had a mulberry lily listed for 11 grand once 😂😂😂
I think you nailed it with "no one values a business more than the founder." 💕
Other US retailers have also struggled. Neiman Marcus and Saks are now merging is one example. I think the increased demand during COVID has led to inflated demand forecasting and these retailers are all hitting a cash flow crunch due to excessive inventory (plus all the reasons you described). I really liked this video and your take on these events.
Exactly what happened with Peloton.
I was in both Saks and NM last week, and I find both stores to be cold and uninviting. It even looked like NM got rid of their Gift Gallery. The Van Cleef boutique blocked the entrance with velvet ropes, and I walked out with my Tiffany and LV bags-where shopping had been a joy.
I started buying Prada bags before farfetch went public. They would go on sale all the time. Now they just price increase for recycled nylon.
So the Nordstrom closest to me has stopped selling most premium designers. It used to be that you could go in and buy brands like YSL, Givenchy, Prada, etc., but no longer. When I talked to an SA I had assumed that perhaps it was because those brands didn’t sell well in that location. Instead the SA told me it was the brands, who pulled their items, and that they would only be sold in Nordstrom stores where an in house kiosk or store could be accommodated. I thought that was pretty interesting. I think the big designers are pulling back from all 3rd party retailers, online or department stores.
I noticed this in our Las Vegas location. The handbag department is almost empty! It just has like Longchamp and Rebecca Minkoff, whereas before they had a whole bunch of premium designers.
It's odd, Steph. I was born and raised in the suburbs of New York City. I'm in my 50s now. And Macy's to me was never a luxury department store. It was in every mall in America. The flagship store on 34th Street is an exception. It was special. But regular suburban Macy's were just regular old department stores. I live in Las Vegas now and I don't shop at my local Macy's because they cancelled my store card for no reason, and when I shop at a department store, I want the loyalty perks, so I mainly shop at Neiman Marcus or Saks.
@@kananseyebrow9829 absolutely agree! I'm also a New Yorker and I feel the same.
@@eh1126 And Bloomingdale's used to be my second favorite after Neiman's. I worked up the block from it and loved it. However, yes they are not the same at all. I never in my life considered Macy's luxury. Lol! Although the 34th street location always had all the perfume. New and old. And you could find nice pieces in there.
I'm a New Yorker living in Las Vegas as well. I agree with you on Macy's.
Is it karma or is it because the economy is sh*t now and people just can't shell out 💰💰💰 for crap these days? Maybe a little bit of both
Both
Agree, both.
It is definitely both!
The economy s actually doing better most western countries. UK, France, Italy, Japan and China.The dollars strength against other currencies prove that. I think a lot of people just jump onto the band wagon with this think track but the fact of the matter is the stock Market is killin it and the unemployment rate is extremely low over here in the U.S. I think the biggest impact with the “economy sucks” mindset it the exorbitant food prices. But I think both gas and food prices are manipulated by corporate America. Greedy greedy….thats why I am always for higher taxes for these corps. That trickle down when the gov’t Corps gives then tax breaks is a flat out lie and I am tired of it. They trickle up! Trickle up to the 3rd vacation home, and the Lear jet. It’s is disgusting.
Macy’s here in the States is not luxury. Far from it.
MatchesFashion will be dearly missed!! I truly really loved this retailer
I know, so sad!
Why? Because the cost of living has gone up so much since covid that people will not be able to afford anything. People will focus on food, water, energy, housing & health care. That's all people can afford!
Cos Dior sells a 57 dollar purse for 3k
This is such a great dive into the business side of luxury fashion that ive truly never seen elsewhere keep up the great work 👍
Both Fashionroadman and super Dacob regularly cover the financials. Fashionroad man just did a very deep dive into new Burberry with Daniel Lee. It eye opening and you will learn about a lot of fashion marketing think and brands to consider this when dropping me collections. I think you would enjoy them if you like learning more about the finical side of thing luxury. I luv this kind of stuff as a business and marketing major. It helps me determine a lot of insights about various releases. Both Fashionroadman and Super Dacob easily be found on TH-cam.
Good morning Steph! This is another thought provoking vlog that is super interesting! My thoughts…
it all boils down to money doesn’t it? Competition for profits, in what feels like a worldwide recession, companies over extending themselves, mismanagement of companies, quality issue’s turning customers off, an unstable political climate (in several countries) and the list goes on. These are scary times we live in and people are being more conservative with their spending. All these factors seem to be creating the “perfect storm”, if you will, for the demise of some of these companies. I myself, continue to still purchase a fair amount of merch but I think I fall into the “exception to the rule” category. I have to admit that I have been tempted to look into finance options with some of these luxury brands, for items that would otherwise be out of my scope. I haven’t gone that route yet but it is tempting. It’s a smart strategy for companies who provide this service. It pains me to see businesses closing, going into bankruptcy, regrouping, reorganizing and downsizing. I grew up during a time of the big department store, something that is a rarity today. Fingers crossed that this trend doesn’t continue.
Hi Ruth! Sorry for the delayed response here, sadly TH-cam had your comment down for review but I've put it live now. Thank you for your thoughts, really insightful and interesting.
You're very right, department stores definitely aren't what they used to be. For sure, it feels like the perfect storm and I think that's why we've seen so many people commenting on the state of the luxury market right now.
@@Handbagholic no apologies necessary Steph! I’m just enjoying being an insider! 😘
Because people are sick to death of paying for a badge/brand when the quality is no longer there , people wanted clothing/furniture/jewellery that will last the test of time , not cost a small fortune , but feel like fast Primark/Ikea crap .
Macy's ceased to be a luxury department store many, many years ago. They took over the Sears/JC Penney middle class market (and yes, I know Sears/JCP still exist).
Buy LESS … live and experience more !!
Macy's isn't even a luxury store its a middle of the road department store/mall staple in the north east it took over for Jordan Marsh/Marshall Fields etc. when they went bankrupt decades ago shopping habits have changed with the exelerated popularity of Amazon etc. since the pandemic and poor management in some cases
I don't think Macy's was ever considered a luxury department store in the US. Nordstrom and Bloomingdales would rank higher, and then, of course, Saks and Neiman Marcus would rank the highest.
There is now pushback against Saks as it attempts to move into an appointment only access to the physical stores. It’s employees have, obviously, been instructed not to talk with the media, but anonymously, they are not happy stating the obvious: it ends the impulse buys, and who knows ahead of time whether someone is going to be at the store’s location on a specific date and time. It will be interesting to see if this decision is retracted.
Macy’s has some. Dillard’s is doing better to a $50 Chinese Luxury Pricepoint, and a $350 Korean Pricepoint to H&M and Nicole Kwon.
@@karenward267I’d go. Like Dior. I’d go to Dior but I want to know whether it’s about bringing $10,000 or $100,000.
I believe Bloomingdale’s is owned by Macy’s since 1994. They are sister companies, but Bloomingdale’s does carry a bit more mid luxury items than Macy’s.
@@camilleporta468 Macy’s is great for long lasting Shoes and Housewares. I really wouldn’t buy crystal anywhere else except Mikasa and Direct from Brands. Great Pillows. It is a Michael Kors Outlet Outlet though.
Well the gig is up. The prices are ridiculous since the manufacturing costs have been exposed. Plus it's luxury done by cookie cutter. Done on a global mass.
Why?
The increase of homelessness.
The loss of jobs.
Lack of money to feed families.
Family and finances are a priority, not a ridiculous purse 👛 that cost 💲 20,000.00
I think it has a lot to do with fast fashion and cost of luxury. Is it worth it.
Macy’s is not a luxury department store they are more of a value department store. Saks fifth avenue and Neiman Marcus and bergdorf goodmans are luxury department stores in the US. Additionally Saks fifth and Amazon are purchasing neiman marcus (which also owns FASHIONPHILE a very big pre loved luxury company in the US). Curious to what comes of this merger and what happens to FASHIONPHILE
Exaxtly. Macys either hasnt been luxury for decades or it hasnt at all. Stores wayy too big for that too
You are touching on the heart of this, which is that demand is only one piece of a confluence of many complicated issues related to supply chains, business models, e-commerce, investment trends, etc. etc. Luxury demand could be at an all time high and it doesn’t mean companies will be well run with healthy margins and no company is ever immune from industry disruption. We are in the midst of an upheaval in retail in general that has been decades in the making. Legacy companies are right sizing to survive, but change management is hard, and new companies were invested in carelessly because their models weren’t well understood when they first came on the scene. We also see across every industry that a lot of the founders of this era are excellent fundraisers and sales people but not excellent operators. Revenue and demand really don’t matter if you don’t run a profitable business and it’s hard to run a profitable business when your competitors outspend you in marketing or use other tactics to outlast you.
Matches was one of my favorite online retailers. Very sad to see it go but managed to get a few bargains in their closing down sale
Great video Steph! I really enjoy deeper dives into the financials of these lux brands and retailers as well as marketing trends. Keep it up gurrrlll!
So glad you enjoyed it! 💖💖
A big shame for matches, one of my favourite retailers. However, I benefited from their sale and got a Loewe puzzle in tan for £880
Oh wow what a bargain Rachel! Congrats. Yeah also one of my faves, sad to see them go.
The grestest bargains of Givenchy at matches 😢
Congrats! That’s a fabulous design.
Another really fab video Steph!
Thank you!! 😊
Really enjoyed this video! ❤
So glad! ❤️ hope you’re well
Macys has been closing since the recession here in the United States so it’s nothing new
Two words: PRIVATE EQUITY
Excellent video! I was studying Fashion Merchandising I knew why mostly of them will be bankrupt inside out
Love your videos! I don’t see you talking much about Strathberry bags, would love to hear your opinion about the brand.
@0:08 Macy’s has filed for Chapter11 (bankruptcy protection) in NYC 🍎 hello from NYC
Ah interesting, thanks for the info! Hey to NYC from the UK
Great research! I agree that the option to finance might revive sale of luxury products although it is not money-smart to buy that way.
Yes I agree, I never finance personally but from a business perspective, I guess it makes sense to offer especially on high-ticket items.
It’s recession and nobody has this kind of money to spend especially after price increases which was a nail in the coffin 🌸
You nailed it… and lots of your investigation theories are completely correct, especially for the Fraser group for them is still working progress but they lied to keep their options wide… always amazing and great to see someone who really knows their stuff well done
In this cost of living crisis the demand is simply shifting. Promoting and pushing luxury fashion in this day and age is simply tone deaf. The hype is gone.
I know! Subscription luxury fashion😂. I’ll rent the Chanel for a month, send it back and then rent the Gucci!
Great analysis! Also, just so you know, Macy’s is not considered a luxury store. Saks fifth Avenue is so you are basically comparing to department stores with two different clients.
As was recently understood where, the price to make a designer handbags has been shown to be in the tens of dollars, but is marked up in the thousands of percent. Leatherworkers are deconstructing the bags and show whether a design is worth it or not. Sometimes the leather isn’t the quality expected. In other reviews, the leather isn’t of high quality, and consumers are paying a lot of money for the logo.
I think this is the first and definitely the only video mentioning Macy’s and luxury on the same sentence 😂
Haha! Maybe it’s because I’m from the UK we don’t have Macys but it’s sold as a luxury store in the US.
No it’s not
Interestingly, that in a*yutulu*, the inside sewing at the handles is more carefully made (leather is not so frayed), than in the original one.
Steph I’m so conflicted! I want to buy less, like most people in our handbag community. But some of the bags out at the moment are just reeling me in 😂😢 I don’t want to spend on these brands anymore, but I still want the bags 😂 first world problems eh?
Mike Ashley. The Temu version of Bernard Arnault.
😂😂😂
Sign of the times we're in, these changes in how we spend and what we're interested in as consumers, as producers also evolve in dynamic ways. The definition of luxury has changed, and now, middle class and lower middle, can afford to reach out to individual artists who can make bespoke leather handbags at a fraction of the price. And you have Strathberry, Polene, DeMelllier, and other delicious mid range companies that make handbags with leathers just as superior as Chanel and LV. The playing field is slowly leveling, and companies like Saks, with all the discounts, we just have so many great choices that the top of the line ain't so interesting anymore. Okay, that's just me.
Hi Have you heard about, the new speedy 18 special order, currently offered on the Chinese market only, at around USD 3.800?
I live in a suburb of Philadelphia and our one mall - King of Prussia Mall - has many high end luxury stores. The wealthy people that can actually afford these brands do not buy them, they have “quiet wealth” and find branded items bougie or tacky and avoid them. The black population in our area are the main shoppers at these high end stores, if it wouldn’t be for this demographic I feel these stores would not survive in our area. These luxury brands do not have the cache for the wealthy that they used to, at least in my area.
High Fashion Haute Couture and Luxury is overpriced overrated and obnoxious . Less flash and quiet elegance is the way to go . Snob retail .
Great video! Thanks for the info 😊
Glad it was helpful!
alot of these are not accepting returns or offering full refunds
be very careful
Macys is not luxury, Nieman Marcus is
I buy online. I do expect that same instore service, wrapped, bag, dustbag etc. I recently bought a mid range designer bag from one of the companies that had been recommended in your previous videos and it arrived in a sealed plastic bag in a very box box. There was no dustbag, no shopping bag. I was incredibly disappointed. Luckily I took a video and photos unboxing it and I emailed the company. I got a reply almost immediately (time difference of 10 hours) and within a week I received an apology, and was sent the dustbag and carry bag at no cost to me. To day the least I was thrilled and will continue to buy from this company.
You don't need to spend 000's to have a great product x
Why?. Because the luxury stores and business themselves are Tone Deaf, Ridiculous and Braindead regarding their prices for average to inferior quality goods, designs and materials that is produced/made cheaply compared to when sold. Simple.
Very informative video. Thank you. I use Farfetch quite often and they've been great.
Interesting and also agree re Macys lol. What’re your thoughts on Liberty London?
TYSM for this video !!!
I’m satisfied this is where I think that Saks is curating brands like a Macy’s or Dillard’s and most of it goes on crazy sale I can’t actually get at Longchamp store proper or Ferregamo store proper at Dallas’s Northpark on a Dillard’s with crazy sales.
Luxury is far from over but it may look different. Brands may well roll back distribution as the preloved explodes. Brands will somehow want a piece of that action.
Steph, I've totally missed your videos. I hope you will have a new slew of them out soon. I know you have two LaLage Beaumont bags. Do you find yourself reaching for them? I really like their look, but I am not sure I should invest. Usually if it's not mainstream luxury, I buy it and then don't reach for it. I like this style so much that I think I would use it. Any advice would be great. I apologize, I am not on Instagram, so I am reaching out this way. Thanks!
Really informative interesting video Steph
I’m satisfied it is about Nicole Kwon, Longchamp, Dillard’s and $350 H&M platform shoes in Italian leather sole and satin here.
A lot of brands have decided to stop selling wholesale and only sell through direct channels. Such as Gucci and even Nike (for some models). While I understand it is an effort to be more exclusive and increase desirability. It really affected those wholesalers whose inventory suddenly decreased and lost some appeal. In addition to that luxury after 2023 really shifted. China’s luxury consumption decreased this year. We are definitely at a crossroads where a slowdown on luxury consumption might happen.
Love the top and the hair lady! ❤
Aww thank you Barbara!
So basically… they’ve gone into administration will likely default on an eye watering debt figure then sell the rights/data for a huge profit/competitive advantage. If me or you did that we would be thrown in prison 😟
@handbagholic Farfetch was founded in 2008, not 2017. Thank you for the lovely and informative video ❤.
Went on line to buy a very well known brand on this famous line after a several back forth don’t haven’t have. When I get an agent finds the bag pay for the bag $ 9,000.00 then I receive a cancellation. Sorry it’s a systemic cancellation. What does that even mean. Then don’t cry bankruptcy. It wasn’t the bank they withdrew and replenished my account. Ugh
Farfetch was always sketchy. Overpriced and sale items more expensive than in the boutique 😂 Luxury is boring now. With all the scandals and the people realizing that no bag is worth several thousand bucks there is a downfall in the whole industry
I'm gonna go here, and I know everyone gets uncomfortable about bringing up race, but I do believe it's a factor. The Hood/Hiphop community have been heavily overconsuming Luxury items. I do not think that luxury brands really like people of a certain caliber wearing their items. I blame this on the price raising and the lower quality of the items they produce. It also turns off people like myself who now see certain brands such as Gucci as kinda ghetto now. They are losing sales because their normal clientele have been turned off and their new clientele have horrible taste.
Sacks has half price or more Bagdley Mischka to Dallas area Macy’s carrying full price Bagdley in only shoe and purse.
I was at my two luxury malls last week, and many of the stores are empty. They must rely on the odd big spender. Anyway, the current design model seems to favor bright lights, lots of stark colors, and worse, limited items out on display. I’m looking at one lux retailer’s website, and many things are shown as being available at the store, BUT, they certainly weren’t out. You really do need to know what you want ahead of time and bring it up to the associate. This is a new retail world, and it’s ugly. It especially is now that we know the true cost.
Macy's is not a luxury store. Saks fifth avenue, Neiman Marcus, are luxury stores. Greed cannot go on forever?
Berdorfs is the best at packaging!
There’s a lot of ‘city flipping’ at the moment to ‘pivot to meet the changing face of the demographics’ (that’s the official phrase they use)
this means shopping center owners are buying, selling, trading their shopping centers and re-directing their leases so that shops that don’t meet the new vision won’t be able to re-new their lease, while other shops will come in that cater to whatever the new demographic is
This allows the shopping centers to cater to the demographic while allowing updating construction and re-zoning --such as removing a luxury store that closes early and replacing it with a discount store that does 24hr business.
Is there Farfetch in US?
Yes the website works in the US
Farfetch is extremely overpriced, I worked in operations at Harvey Nichols and we used to pick & packed for Farfetch an they was selling at 20-40% more than retail. I honestly feel like when you work in retail capitalism is very apparent
I learned from living in California…just buy your stuff from these rich people after they’ve had their fill
No one will knows it’s used or if you even bought it new…
I buy everything on eBay…or wherever I can get a deal…I HATE shopping in large department stores for clothing…one day I will just order food online too…
Since women only marry rich men
It’s no reason for me to impress a woman with clothing so I shop for utility clothing not for looks…
So I shop only for myself and when I want to …
Maybe if I had a wife I would shop more
Oh wait maybe if I buy s kids too
But women only marry the 1% which is the rich the rest of us are the 99% lol
So yes it makes perfect sense
Jose Neves should go to jail
I'm really shocked and saddened about Farfetch. I actually have purchased a few designer handbags from them in the past six months and I do have to say it has been great and the packaging has been wonderful as well. Macys to me is like a Dillards. I do not set foot in there unless I have to. I am not a department store person though but would rather go to Neiman Marcus over any of them or Saks. I have also heard Burberry replaced their CEO due to low sales and then there is the craziness happening with Dior. I do think that luxury brands as a whole are going to have to make the experience worthwhile to a point but those of us who love the experience of luxury items and have great SA's will continue to purchase from them. I personally do love the experience of purchasing from Chanel or Hermes and love my SA's however, I am considering more resale market because some also make it very nice too. It's election year so a lot of times, these things happen surrounding that.
Steph I really really missed your videos so so so much and you are looking too too pretty you are my truly truly inspiration 🥹🥹💕💕
Thank you Mansoor! Hope you're well
You said José wrong, it's said with a H
It’s down to quality. People with high incomes understand about high quality.
@@hyperstarter7625 pretentious and patronising?
Luxury is dying, you may need to start making content on an entirely new subject matter.
Why would anyone buy from a third party seller when you can purchase directly?
@@avayu2289 people buy from third party retailers because the luxury stores themselves are Tone deaf, ridiculous and even braindead regarding their prices for average to inferior quality goods, designs and materials that is produced/made cheaply compared to when sold. Simple.
I don't see Dior and other brands going bankrupt.
I don't know where you got this and why you're spreading this.
This is all about sales, this is advertising People should order this from the gray box.
I don't know anything about social media advertising, I don't need it. People get something out of making handbag promotional videos, they probably get money for it somehow. I'm a normal customer and go to the brand boutique every now and then and look at the brands' official advertising photos. I wouldn't buy anything used. If you buy it used, you should ask for a certificate of authenticity from a recognized testing service and buy it in a real store, under no circumstances in conjunction with an influencer video.
must say steph, you are lookin pretty hot in this vid
You lot make the brands look cheep the rich do not bay them in y .more to maenstreem